"We do not wish to rule another people," the conservative leader declared in a speech to the Knesset, Israel's parliament. Without endorsing the goal of sovereignty for the Palestinians, he said he favored an accord giving them "all the powers necessary to rule themselves, except those that would threaten Israel's existence and security."

His remarks reaffirmed a stance at odds with the Obama administration, which advocates continued negotiations to create an independent Palestinian state, and reflected Israel's rightward shift in the Feb. 10 election. But his message was mostly conciliatory as he became prime minister for a second time. Voicing support for a broader U.S. objective in the region, he said Israel "today more than ever strives to reach full peace with the entire Arab and Muslim world." He added: "That yearning is supported by a joint interest of Israel and the Arab states against the fanatical obstacle" of terrorism.

Palestinian Authority President Mahmoud Abbas, Israel's longtime partner in peace talks, reacted with scorn. "This man doesn't believe in peace, so how can we deal with him?" he said on Palestine Television.

Netanyahu spoke near the start of an often raucous session of the newly elected parliament. Six hours later, it ratified his appointments to a 38-member Cabinet, and they were sworn in along with him a few minutes before midnight.

His nationally televised address generated scant reaction in the chamber until he turned to domestic matters. From then on, heckling interrupted him frequently.

Netanyahu spoke slowly and solemnly, looking tired after weeks of bargaining to assemble a ruling coalition. Besides his Likud party, he gathered the support of three other right-wing parties, plus the Labor party. Together they hold 69 of the 120 seats in parliament.

To placate his new partners, he amassed the biggest Cabinet in Israel's history. New ministerial positions were created, including one for "improving government service to the citizenry via the Internet" and five without precise responsibilities.

Rebelling against a deal Labor leader Ehud Barak struck with Netanyahu, five of Labor's 13 parliament members abstained from the vote to approve the new government. Netanyahu picked up five votes from outside the coalition, but it appeared that part of Labor will break away and join the opposition.

Netanyahu needs Labor's support to balance the clout of right-wing parties that are likely to oppose any concessions in his dealings with the United States or the Arab world.